Strong Oil, Natural Gas Production is Essential to American Energy Exports, Global Leadership

Mark Green
Posted September 8, 2022

America was the world’s largest exporter of liquefied natural gas (LNG) the first half of this year – news that Washington should embrace, as surely it is embraced by America’s allies, especially in Europe.

Becoming the No. 1 LNG exporter is more than a flashy data point. It is American energy leadership making a difference in the world – increasing the stability of global energy markets, supplying energy to America’s friends abroad, and helping counter attempts by some nations to use energy as a weapon. Exports also benefit American families and businesses – in economic growth, job creation and increased production that helps put downward pressure on prices.

These benefits result from American natural gas production and growing LNG export capacity (also No. 1 in the world), which should not be hampered by tax increases, infrastructure roadblocks or misguided proposals to restrict or ban LNG exports.

America’s European allies know this. Nearly 60% of U.S. LNG went to Europe in August, Markets Insider reports, up from just 19% in August 2021. In June, America supplied more natural gas to Europe than pipelines from Russia – first.

U.S. natural gas suppliers have provided critical support for the Biden administration’s energy security agreement with the European Commission reached earlier this year, and they’ll continue to do that if supported by the right policies from Washington.

Certainly, this is needed. Russia continues to use energy to pressure nations opposed to its aggression in Ukraine. Its energy company, Gazprom, said last week it is shutting the Nord Stream 1 pipeline, the key natural gas pipeline into Germany and the rest of Western Europe.

Europe is bracing itself for the approaching winter. This week, the European Commission announced a plan that includes mandatory reductions in electricity use. Europe is the picture of energy insecurity: rationing power and struggling to diversify its energy supply in the wake of Russia’s aggression.

Now more than ever, American global energy leadership is critically important. Washington should not hamstring U.S. producers by imposing new taxes on the industry, by wrapping American energy in red tape and by erecting obstacles to needed infrastructure – including domestic delivery networks and facilities that support energy exports. Chevron’s Mike Wirth, in an interview with Bloomberg:

“The U.S. is an important supplier of energy. It's the largest exporter of oil, of LNG, of products into the world and at a time when the world is tight it's important that U.S. supplies not only meet domestic needs but also support international markets and customers.”

More American natural gas and oil are needed, not less. Unfortunately, “less” has been the long-term goal of the Biden administration since it took office – pausing new federal oil and natural gas leasing for months, failing to properly plan for offshore development, neglecting to hold legally required onshore leases, canceling pipelines, entertaining energy export restrictions, and chilling the investment climate for new oil and gas projects.

More infrastructure is needed, not less – to take American-made energy from production zones to refineries and other points in the supply chain so that fuels and other products can go where they’re needed. We’re looking at you, New England, where for years winter has helped underscore the region’s chronic lack of sufficient infrastructure.

More American energy is needed, by allies abroad and here at home. America is the world’s leading exporter of LNG, and that’s a landmark achievement. But it’s critical to have the right policies in place to support more American natural gas and oil production – to ensure our own energy security and to help others do the same.